Positive market sentiment continued to support major currency trading until the European session with the US dollar falling to a three-week low and the pound strengthening at a three-year high.
The 10-year increase in U.S. treasury yields has pushed the safe-haven yen against the major currencies, including the greenback dollar.
However, rising bond yields failed to stimulate the US dollar to rise as well, on the contrary, the currency fell lower than its main competitors.
Optimism for global recovery continues to grow, as attention is once again targeted to the $ 1.9 trillion coronavirus stimulus plan. US President Joe Biden is set to resume his plans after Donald Trump's prosecution trial ends.
Donald Trump has been released by the Senate in his second prosecution trial allegedly responsible for the January 6 attacks on the U.S. Capitol.
The commodity currency maintained its strengthening momentum with the kiwi dollar trading rising to a five-week high, while the Aussie dollar strengthened at nearly a month-long high.
Meanwhile, the pound continued to strengthen, supported by a fast-paced vaccination campaign. The UK also reported the lowest case of Covid-19 infection since October, indicating that sanctions were implemented to curb the spread.
In addition, the euro rose sharply as market focus shifted to the release of preliminary estimates of European zone Gross Domestic Product (GDP) growth data for the last quarter of 2020 this afternoon.
